Payroll Services Letter - Program Support Center
Payroll Services Letter - Program Support Center
Payroll Services Letter - Program Support Center
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<strong>Payroll</strong> <strong>Services</strong> <strong>Letter</strong><br />
Number: PS05-09.2<br />
Date: June 16, 2008 (Revised May, 2009)<br />
Subject: Debt Collections<br />
Category: Debt Management<br />
________________________________________________________________<br />
Reference: PS05-09.1, Subject: Debt Collections dated June 16, 2008. PS05-<br />
09.2 supersedes PS05-09.1. Please replace that letter with this one.<br />
Purpose<br />
This letter is to inform the Department of Health and Human <strong>Services</strong> (HHS) Human<br />
Resource (HR) <strong>Center</strong>s and Operating Divisions (OPDIV) of payroll procedures for debt<br />
collections. The changes will be implemented as part of the conversion of the HHS<br />
payroll system to the Defense Civilian Pay System (DCPS) operated by the Defense<br />
Finance and Accounting Service (DFAS), our new payroll provider.<br />
The DFAS Cleveland (DFAS-CL) <strong>Payroll</strong> Office will notify employees directly<br />
regarding employee debts.<br />
Debt collections fall into one of four categories:<br />
A. Salary Debts<br />
B. Administrative and Non-Salary Debts<br />
C. Court Ordered Garnishments<br />
D. Separated Employee Salary Debts<br />
Salary Debts<br />
_ _ _ _ _ _ _ _ _ _ _ _<br />
Salary debts can occur when time and attendance information is corrected or changed for<br />
a previous pay period or when retroactive personnel actions are processed that changes<br />
the salary or pay entitlements. This includes any overpayment that is attributable to<br />
clerical errors, administrative errors, or delays in processing pay documents. This also<br />
includes Health Benefits debts for employees who are on leave without pay (LWOP) or<br />
who have insufficient salary to cover health benefits premiums. Salary debts are<br />
classified as either routine debts or non-routine (full due process) debts.<br />
PS05-09.2 Page 1 of 18
Routine Debt<br />
A routine debt is defined as a salary overpayment having an amount of $50.00 or less, or<br />
one that is greater than $50.00 but is identified within four pay periods. The collection<br />
of a routine debt will begin in the pay period that it is identified by the payroll office.<br />
There will not be a delay in starting the collection of newly identified routine debt. A<br />
remark will appear on the Leave and Earnings Statement (LES) in the pay period the<br />
collection is started. The remark will include the amount being collected in the current<br />
pay period, the gross amount of the debt, what caused the debt (time and attendance or<br />
personnel action) and a contact phone number for the DFAS debt processing team.<br />
The following is an example of a remark that may appear on the LES for each deduction<br />
taken:<br />
$__________COLLECTED THIS PAY PERIOD FOR $__________.___ (LESS<br />
AMT APPLIED LEAVES A REMAINING BALANCE $__________.___)<br />
_______________________ CORRECTION DEBT IN ACCORDANCE WITH<br />
DEBT COLLECTION IMPROVEMENT ACT OF 1996. POC: PAYROLL<br />
OFFICE CUSTOMER SERVICE DESK, 1 (800) 729-3277.<br />
The deduction amount may not exceed 15 percent of disposable net pay unless the<br />
employee gives written consent. If the total amount of the debt exceeds this limitation,<br />
the initial deduction will be for the full 15 percent and remaining deduction amounts will<br />
be 15 percent until the debt has been satisfied.<br />
Non-Routine Debts<br />
A non-routine debt is any salary overpayment greater than $50 that was not identified<br />
within four pay periods in which the debt was incurred. This is considered a debt<br />
requiring full due process. Due process includes giving the employee written<br />
notification, which includes information about submitting payments, and the employee’s<br />
rights to request a hearing or a waiver.<br />
If the employee does not repay the debt or contact the payroll office to establish a<br />
repayment schedule within 30 days, the DFAS-CL <strong>Payroll</strong> Office will begin collection of<br />
the debt by salary offset at 15 percent of their disposable net pay.<br />
The following is an example of a remark that may appear on the LES for each deduction<br />
taken:<br />
$__________COLLECTED THIS PAY PERIOD FOR $__________.___ (LESS<br />
AMT APPLIED LEAVES A REMAINING BALANCE $__________.___)<br />
_______________________ CORRECTION DEBT IN ACCORDANCE WITH 5<br />
U.S.C. 5514. POC: PAYROLL OFFICE CUSTOMER SERVICE DESK,<br />
1 (800)729-3277.<br />
PS05-09.2 Page 2 of 18
Health Benefit Debts<br />
During periods of leave without pay or insufficient pay, employees participating in the<br />
Federal Employees Health Benefits <strong>Program</strong> (FEHB) are indebted for the amount of the<br />
employee’s portion of the FEHB premiums.<br />
Collection for FEHB debts will be for the current pay period and one prior pay period<br />
until the debt is paid in full.<br />
There are various remarks that appear on the LES for FEHB Debts. Below are some of<br />
these remarks:<br />
• CASH PAYMENT PROCESSED FOR FEHB<br />
o This remark is produced when a payment for FEHB indebtedness is<br />
processed.<br />
• FEHB PREMIUM HAS BEEN PREPAID BY YOUR AGENCY DUE TO<br />
INSUFFICIENT PAY. THIS DEBT MUST BE REPAID EXCEPT FOR THOSE<br />
ELIGIBLE RESERVISTS IN SUPPORT OF CONTINGENCY OPERATIONS.<br />
o This remark is produced when an employee has insufficient funds during<br />
any pay period to pay the employee’s portion of the FEHB premium. The<br />
agency is automatically charged for the employee’s portion of the<br />
premium.<br />
• PREPAID FEHB PREMIUM DEBT COLLECTED<br />
o This remark is produced when an employee has a deduction or adjustment<br />
for FEHB that was previously paid by the agency.<br />
• RETROACTIVE ADJUSTMENT(S) FOR HEALTH BENEFITS PROCESSED<br />
o This remark is produced when an automatic collection for FEHB<br />
indebtedness is processed.<br />
Repayment Options<br />
These options normally apply to non-routine debts. However, an employee may submit<br />
payment in full for routine debts, if they wish. The DFAS-CL <strong>Payroll</strong> Office must be<br />
notified that payment in full has been submitted, with the date and amount of the payment<br />
so the automatic payroll deduction can be stopped.<br />
The employee can consent to pay the debt voluntarily or the Government can collect the<br />
debt involuntarily.<br />
Voluntary Repayment<br />
There are two methods for repaying a debt voluntarily:<br />
PS05-09.2 Page 3 of 18
1) A payment can be made by check or money order. The payments can be paid<br />
in one lump sum or at regularly established intervals. Checks or money orders<br />
for repayment of debts should have the employee’s SSN and “Debt Payment”<br />
written on the check and be made payable to DFAS-CL DSSN 8522 and<br />
mailed to:<br />
DFAS-CL<br />
P.O. Box 99559<br />
Cleveland, OH 44199<br />
2) The debt can be collected through payroll deduction using one of the<br />
following methods.<br />
a) A one-time deduction.<br />
b) Payment may be spread over more than one pay period for other than<br />
minor indebtedness amounts. The debt should be equal to at least 15% of<br />
the disposable pay in order to qualify for installment liquidation.<br />
Installment payments must be at least $25 per pay period and must be<br />
sufficient to liquidate the debt within three years. All installment<br />
payments that are less than 25% of the employee’s disposable net pay<br />
must be approved by the designated agency representative.<br />
Involuntary Repayment<br />
Recovery of the indebtedness by involuntary salary offset is for instances in which the<br />
employee has failed to either make a payment, authorize a voluntary one-time payroll<br />
deduction, or enter into an agreement with the payroll office for installment deductions.<br />
(see Attachment A – sample – Debt Collection <strong>Letter</strong> for Formal Due Process Debts)<br />
Waiver and Hearing Requests<br />
Waiver and hearing requests should be submitted by the employee to their HR <strong>Center</strong>.<br />
Employee instructions for requesting waivers and hearings are found in Attachment B of<br />
this letter and on the HHS Intranet Forms website<br />
at:http://intranet.hhs.gov/forms/hhs_forms.html<br />
PS05-09.2 Page 4 of 18
Hearing Request<br />
If an employee has reason to believe he or she was not overpaid or the amount of the debt<br />
is incorrect, the employee may submit a written request for review by a hearing officer<br />
within fifteen calendar days from the date of mailing of the notice. The request must<br />
raise a genuine issue of fact or law.<br />
Waiver Request<br />
Under certain circumstances, debt claims against an employee may be waived. Authority<br />
is provided by 5 USC 5584 and 4 CFR, parts 91 and 92, for the waiver of claims of the<br />
United States against an employee stemming from an erroneous payment of pay or<br />
allowances.<br />
It is the employee’s responsibility to review his/her LES and make an inquiry as to any<br />
unexplained increases in their pay and allowances.<br />
The employee may request a waiver of the overpayment if he/she believes that the<br />
overpayment occurred through administrative error and the employee was not aware of<br />
the error through receipt of any official document/notification.<br />
Amounts collected and later waived or found not owed will be promptly refunded to the<br />
employee unless otherwise provided by the statue or contract.<br />
Submission Requirements<br />
If an employee decides to apply for a waiver or hearing, he or she should follow the<br />
instructions for Request for Waiver of Overpayment or for Hearing (DHHS), Attachment<br />
B, and send the request to the HR <strong>Center</strong>. The request for waiver or hearing should<br />
include the reason for the request, whether the employee was aware or unaware of the<br />
overpayment, whether the employee put forth any effort to question the overpayment, and<br />
an actual request for a refund if the waiver is granted.<br />
Suspension of Collection<br />
DFAS will suspend collection of the debt pending waiver determination only if the<br />
OPDIV representative or HR <strong>Center</strong> requests suspension in writing.<br />
PS05-09.2 Page 5 of 18
The address is:<br />
DFAS Cleveland<br />
Civilian <strong>Payroll</strong> Office<br />
8899 E 56 th Street<br />
Indianapolis, IN 46249-1900<br />
The fax number is:<br />
Toll Free: 1 (866) 401-5849<br />
Commercial: 1 (317) 275-0354<br />
Hearing and Waiver Decision<br />
The employee will be directly notified of the hearing and waiver decision. A copy of the<br />
decision letter will also be forwarded to the DFAS-CL <strong>Payroll</strong> Office. The DFAS-CL<br />
<strong>Payroll</strong> Office is responsible for processing refunds of any amount collected and<br />
subsequently waived. The DFAS-CL <strong>Payroll</strong> Office must immediately initiate further<br />
collection action when informed of a waiver denial and collection action has been<br />
suspended.<br />
Administrative and Non-Salary Debts<br />
Administrative and Non-Salary debts are monies owed to the OPDIV or other<br />
Government agencies by employees. Examples include: recovery for travel advances,<br />
equipment, student loans, training, salary advances, emergency salary advances, and<br />
other Government agency debts.<br />
Debts owed to OPDIVS<br />
In order for an OPDIV to request recovery of a debt, they must submit the request to the<br />
DFAS-CL <strong>Payroll</strong> Office along with the Request for Recovery of Debt Due the United<br />
States by Salary Offset form (see Attachment C). This form is used for requesting<br />
recovery of a debt by salary offset and certifying that due process has been completed.<br />
The collection is processed through the employee’s payroll record, and the specified<br />
amount is withheld from the employee’s pay in single or multiple deductions.<br />
The request form must be sent directly to the DFAS-CL <strong>Payroll</strong> Office via the DFAS<br />
Imaging <strong>Center</strong>. For more information on sending documents to DFAS-CL <strong>Payroll</strong><br />
Office, see the Imaging Documents <strong>Payroll</strong> <strong>Letter</strong>. For more information on how to<br />
properly prepare the form, see PS05-02.1, Agency Administrative Offset <strong>Letter</strong>.<br />
PS05-09.2 Page 6 of 18
The address is:<br />
DFAS Cleveland<br />
Civilian <strong>Payroll</strong> Office<br />
8899 E 56 th Street<br />
Indianapolis, IN 46249-1900<br />
The fax number is:<br />
Toll Free: 1 (866) 401-5849<br />
Commercial: 1 (317) 275-0354<br />
Debts Owed to Other Government Agencies<br />
When federal agencies notify HHS of outstanding employee debts owed to their agency,<br />
the request for collection should be forwarded to the DFAS-CL <strong>Payroll</strong> Office via the<br />
DFAS Imaging <strong>Center</strong> using the revised form DD2481 – Request for Recovery of Debt<br />
Due the United States by Salary Offset. The address is:<br />
DFAS Cleveland<br />
Civilian <strong>Payroll</strong> Office<br />
8899 E 56 th Street<br />
Indianapolis, IN 46249-1900<br />
The fax number is:<br />
Toll Free: 1 (866) 401-5849<br />
Commercial: 1 (317) 275-0354<br />
These debts may automatically be collected by salary offset through the Treasury Offset<br />
<strong>Program</strong> (TOP). With each deduction taken the LES remark will state:<br />
$_(deduction amount) COLLECTED THIS PAY PERIOD FOR A $_(gross amount)_<br />
TREASURY OFFSET PROGRAM DEBT. CONTACT THE TOP CALL CENTER AT<br />
1-800-304-3107 FOR MORE INFORMATION.<br />
Additional remarks may be found on the employee’s LES for the collection of other<br />
government agency debts.<br />
PS05-09.2 Page 7 of 18
Court Ordered Garnishments<br />
Garnishments and bankruptcies are types of court ordered debts.<br />
Garnishments:<br />
There are garnishments for 1) child support and alimony and 2) commercial debts.<br />
DFAS Cleveland is the official record keeper for all of these documents and is<br />
responsible for processing them. Employees are instructed to contact DFAS Cleveland<br />
directly with questions concerning garnishments.<br />
Inquires and court orders should be sent to:<br />
DFAS-CL<br />
Code L<br />
PO Box 998002 <br />
Cleveland, OH 44199-8002 <br />
Or call:<br />
Toll Free: 1 888-332-7411<br />
For commercial debts, which include state and local indebtedness, a one time<br />
administrative fee of $75.00 per case shall be collected from the amount of the<br />
garnishment due to the creditor. The administrative fee will be collected in full before<br />
any payments are remitted to the creditor. An administrative fee will be assessed for each<br />
case if more than one commercial debt exists.<br />
Bankruptcy:<br />
Federal employees may file for bankruptcy under the provisions of 11 U.S.C. The court<br />
orders are sent to the DFAS-CL <strong>Payroll</strong> Office. The DFAS-CL <strong>Payroll</strong> Office processes<br />
the collection in accordance with the instructions in the court order.<br />
Debt collection inquiries from HR <strong>Center</strong>s on behalf of employees can be sent using<br />
the Peregrine system. The category is: DEBT COLLECTIONS and the subcategory is<br />
the type of debt such as: AGENCY DEBTS, BANKRUPTCY, IRS LEVIES, or<br />
SALARY OVERPAYMENTS. Inquiries can also be sent to the DFAS-CL <strong>Payroll</strong><br />
Office via the Imaging <strong>Center</strong>. The address is:<br />
DFAS Cleveland<br />
Civilian <strong>Payroll</strong> Office<br />
8899 E 56 th Street<br />
Indianapolis, IN 46249-1900<br />
The fax number is:<br />
PS05-09.2 Page 8 of 18
Toll Free: 1 (866) 401-5849<br />
Commercial: 1 (317) 275-0354<br />
D. Separated Employee Salary Debts<br />
Separated Employee Salary Debts for Former HHS Employees<br />
The <strong>Program</strong> <strong>Support</strong> <strong>Center</strong>’s (PSC), Financial Management <strong>Services</strong> (FMS) Debt<br />
Management Branch will continue to collect debts for employees who separate from<br />
HHS. (see Attachment D – Debt Collection <strong>Letter</strong> for Separated Employee Debts).<br />
If you have questions regarding the information contained in this letter, please contact<br />
your <strong>Payroll</strong> Customer Service Team.<br />
PS05-09.2 Page 9 of 18
Attachment A<br />
SAMPLE<br />
DEBT COLLECTION LETTER FOR FULL DUE PROCESS (NON-ROUTINE) DEBTS<br />
Each <strong>Payroll</strong> Office<br />
<strong>Letter</strong>head here<br />
(2A)Name<br />
(2B)Street<br />
City, State Zip<br />
(1)DATE: Month date, year<br />
Dear Name:<br />
An overpayment record has been generated on your pay account for pay period(s) ending<br />
________________(20). The gross amount of your overpayment (including pay, all taxes, benefits and<br />
other deductions) is ____________(5). The overpayment is the result of<br />
__________________________(4)change(s).<br />
Under the provisions of 31 CFR 901.2, payment of this debt is due within 30 days from the date of<br />
this letter. Your repayment options are:<br />
a. You may remit the repayment in the net amount of $__________(6) by check or<br />
money order payable to DFAS-CL DSSN ____(7), along with the payment coupon at the bottom of this<br />
letter to DFAS-CL, P.O. Box 99555, Cleveland OH 44199.______________________________(8).<br />
b. If you are unable to remit payment in full, you may submit the enclosed Voluntary<br />
Repayment Agreement to your civilian payroll office at the address on the letterhead above.<br />
c. If you do not repay the debt in full or establish a voluntary repayment schedule within<br />
____(9) days, we are required to collect the debt involuntarily from your pay, beginning on<br />
___________(10). The maximum amount deductible under these circumstances is 15 percent of your<br />
disposable pay each pay period until the debt is repaid in full. Our estimates of your disposable pay, based<br />
on current payroll information, is $__________(11). Therefore, the maximum deduction would be<br />
$__________(12), and repayment of the principal amount of the debt would take approximately _____(13)<br />
pay periods.<br />
We encourage your prompt payment as in accordance with 4 CFR 102. 13 and 31 USC 3717,<br />
interest at the Treasury tax and loan rate, penalties and administrative fees, may be assessed from the date<br />
of this letter on any part of the debt not paid within _____(9) days of the date of this letter.<br />
You may request copies of records we hold pertaining to your debt by contacting this office.<br />
If you have any questions about your debt you may contact your timekeeper for time and<br />
attendance corrections, or your personnel office for changes in personnel items or allowances. For general<br />
questions your Customer Service Representative (CSR) can either assist you or contact this office to obtain<br />
information relative to your needs. Your CSR cannot answer questions on debts more than 12 months old.<br />
Contact the payroll office Customer Service Desk, at (comm phone number), DSN (DSN prefix)(14) for<br />
action.<br />
You may request a hearing concerning the amount, validity of the debt, or the repayment schedule.<br />
A hearing only determines the validity of the debt and has no bearing on your ability or responsibility to<br />
PS05-09.2 Page 10 of 18
epay the debt. Should you choose to exercise this option, please submit your written request within 30<br />
days from the date of this letter to your civilian payroll office. Please include a statement and any<br />
supporting documents contesting the validity of the debt. Detailed guidance regarding hearings for<br />
erroneous payments under the authority of 5 USC 5514 are contained in regulations of the employing<br />
agency. ___________________ new fill-in-the-blank contains the agency’s web site.<br />
You may also request a waiver of repayment of the debt if you acknowledge the validity of the<br />
debt, but believe you should not be required to repay it. Although collection of your debt may continue<br />
after receipt of your waiver request, any amount collected by this office that is later waived will be<br />
refunded to you. Detailed guidance regarding waiver of claims for erroneous payments under the authority<br />
of 5 USC 5584 are contained in regulations of the employing agency. ___________________ new fill-inthe-blank<br />
contains the agency’s web site.<br />
Federal Statute 31 USC 3716 also requires that if you retire or resign before your debt is paid in<br />
full, your final pay (salary and lump sum payments) may be applied to liquidate your debt balance without<br />
further notification.<br />
Sincerely,<br />
(Signature Name)(15)<br />
Supervisor, Debt Processing<br />
_______________________________________________________________________<br />
Please remit with payment:<br />
Name___________(2A)___________________________ SSN____(17)____ PayBlk_(18)___ Code_(19)_<br />
Debt Dates_______(20)________ Debt Type_____(4)_____________ Creation Date ____(3)____<br />
Sequence Number___(21)______<br />
LOA__________(22)______________________________________________________<br />
_______________________________________________________________________<br />
Payment Amount Enclosed $______(23)____________.<br />
PS05-09.2 Page 11 of 18
Voluntary Repayment Agreement for Civilian <strong>Payroll</strong> Indebtedness<br />
I understand that I owe the amount indicated below due to a salary overpayment. Should I fail to return this<br />
repayment agreement, 15 percent of my disposable pay will be deducted beginning in the stated pay period.<br />
An estimate of this amount is shown below.<br />
I also understand that if I decide to repay the amount owed by any method other than in a lump sum<br />
payment, interest at the Treasury tax and loan rate may be charged on the unpaid balance every month until<br />
the debt is paid in full.<br />
Please sign and return this repayment agreement to your payroll office.<br />
Debt Reason<br />
Allowance (4)<br />
Sequence Number 12345 (21)<br />
Amount Owed $357.11 (6)<br />
Est. Disposable Net Amount $700. 00 (11)<br />
Est. Deduction Amount 15% of net disposable $105. 00 (12)<br />
PPE Deductions will begin July 1, 2008 (10)<br />
Code_(19)_ Debt Dates_______(20)________ Creation Date ____(3)____ <br />
LOA__________(22)______________________________________________________<br />
_______________________________________________________________________<br />
Employee's Name (2A) SSN: (17) Pay Blk (18) DB___ JANE<br />
C. SMITH 111-11-1111 301 ZFR<br />
I choose the following repayment plan (Check one):<br />
1. I am repaying what I owe in a lump sum. My payment in the amount of $______________is enclosed.<br />
2. Deduct from my salary the total amount in pay period ending _____.<br />
3. I do not want to pay it all at once. You may deduct $_________________ each pay period, which is<br />
more than 15 percent of my disposable pay.<br />
**4. I am unable to pay 15 percent of my disposable pay because of a financial hardship. You may deduct<br />
$__________ each pay period. This repayment amount has been approved by my employing agency.<br />
(Signature of agency approving official is required below).<br />
Signature: __________________________________ Date: _________________<br />
Daytime Telephone Number: _____________________________<br />
**Approving Official's Signature/Date:_________________________________<br />
PS05-09.2 Page 12 of 18
Attachment B<br />
Request for Waiver of Overpayment or for Hearing (DHHS)<br />
INSTRUCTIONS<br />
PLEASE CAREFULLY READ THE FOLLOWING INFORMATION BEFORE<br />
COMPLETING THE REQUEST FOR WAIVER OF OVERPAYMENT OR<br />
HEARING ON PAGE 2 OF ATTACHMENT B<br />
The Secretary shall collect on any claim of the United States for money or property<br />
arising out of the activities of the Department of Health and Human <strong>Services</strong>. 31 U.S.C.<br />
§ 3711(a). Any debt owed to the Department of Health and Human <strong>Services</strong> may be<br />
collected through administrative offset or wage garnishment. 31 U.S.C. § 3716(a); 31<br />
U.S.C. § 3720D. However, if an employee disputes the debt or the amount of the debt,<br />
he or she may make a timely written request for a hearing before any collection efforts<br />
are made. 45 C.F.R. § 30.15; 45 C.F.R § 32.5. Such a hearing, at the Department’s<br />
option, may be oral or written. 45 C.F.R. § 32.5. The employee may also request to have<br />
the debt waived if it arose due to an administrative error. 5 U.S.C. § 5584(a).<br />
The Secretary may waive a claim of the United States against an employee arising out of<br />
an erroneous payment of pay or allowances if the collection would be against equity and<br />
good conscience and not in the best interest of the United States. 5 U.S.C. § 5584(a).<br />
Should you wish to file a request for a waiver of overpayment or request a hearing<br />
regarding your indebtedness to the Department of Health and Human <strong>Services</strong>, check the<br />
appropriate space on the attached request form. Attach a separate statement specifying<br />
which decision you are disputing and explaining the reasons for the dispute to this<br />
request. You must also list any desired supporting witnesses and include any documents<br />
to support your request. Upon completion of this form, sign it, attach any supporting<br />
documents, and present all documents to your current Servicing Personnel Officer, or if<br />
you are a former employer, to your former Servicing Personnel Officer. Waiver of<br />
overpayment requests submitted by headquarters employees of the Office of the<br />
Secretary (OS) will be forwarded to the General Law Division of the Office of the<br />
General Counsel for review. Hearing requests will be forwarded to the Departmental<br />
Appeals Board for review. Waiver requests submitted by OS regional employees will be<br />
forwarded to the appropriate regional chief counsel’s office. Waiver requests for<br />
employees working in the DHHS Operating Divisions (OPDIV) will be reviewed by the<br />
employee’s employing operating Division.<br />
PRIVACY ACT NOTICE<br />
This notice is provided pursuant to Public Law 93-579, Privacy Act of 1974, 5 U.S.C. Section 552a, for individuals supplying information for a<br />
waiver/hearing request.<br />
Authority: This information is solicited pursuant to one or more of the following provisions: 5 U.S.C. § 5514, 31 U.S.C. § 3720D, 31 U.S.C. § 3716(a),<br />
45 C.F.R § 30.15, and 45 C.F.R § 32.5. Disclosure of the requested information is voluntary, but necessary for processing.<br />
Purposes and Uses: The primary use of the information supplied on this form is for evaluating claims arising out of an erroneous payment of pay or<br />
allowance. This information may be disclosed to the (1) Department of Justice for litigation or further administrative action; (2) to the Treasury<br />
Department; and (3) other agents of the Department of Health and Human <strong>Services</strong> to assist with collecting or compromising a debt. Social Security<br />
numbers are requested to identify the employee and the debt owed to the Department.<br />
Effects of Nondisclosure: Failure to supply the information will result in denial of a request.<br />
PS05-09.2 Page 13 of 18
Request for Waiver of Overpayment or for Hearing (DHHS)<br />
Instructions: Please carefully read the instructions on the reverse side of this form<br />
before completing the information below, and attach the information described in<br />
the instructions when you present your request.<br />
____________ I dispute the debt and/or the amount owed to the Department of<br />
Health and Human <strong>Services</strong> and request a hearing pursuant to the administrative wage<br />
garnishment and offset provisions. 45 C.F.R. § 32.5; 45 C.F.R. § 30.15. This hearing<br />
request has been submitted within fifteen days from the date of the collection notice.<br />
____________ I request a waiver of overpayment pursuant to 5 U.S.C. § 5584(a),<br />
because the overpayment occurred through an administrative error, and I was not aware<br />
of the error and could not have reasonably been expected to have known of the error<br />
through receipt of any official document e.g. Leave and Earnings Statements,<br />
Notification of Personnel Action, SF-50 etc. I am aware that I am not entitled to a<br />
hearing under the waiver provision. A separate statement explaining the overpayment<br />
and the reason(s) for my dispute is attached.<br />
____________ I do not request a waiver of overpayment pursuant to 5 U.S.C. §<br />
5584(a). However, I am requesting that any administrative charges and/or interest<br />
incurred due to my indebtedness be waived because the overpayment occurred through an<br />
administrative error. I was not aware of the error and could not have reasonably been<br />
expected to have known of the error through receipt of any official document, e.g. Leave<br />
and Earnings Statements, Notification of Personnel Action, SF-50), etc. A separate<br />
statement explaining the overpayment and the reason(s) for my dispute is attached.<br />
Employee Name ______________________________SSN:____________________<br />
Signature_____________________________________Date___________________<br />
Completed by the Servicing Personnel Office only<br />
Date Received __________Name ____________________Telephone Number ____________<br />
HR <strong>Center</strong> __________________________________ For OPDIV _______________________________<br />
PS05-09.2 Page 14 of 18
Guidelines for Completing the DD2481<br />
Attachment C<br />
SECTION 1: PAY AGENCY IDENTIFICATION<br />
a. Name – DFAS- Cleveland<br />
b. Address – 1240 E 9 th St, Rm 2381<br />
Cleveland, OH 44199<br />
SECTION 2: EMPLOYEE IDENTIFICATION<br />
a. Name – Last Name, First Name, Middle Initial<br />
b. Address – Employee’s complete mailing address<br />
c. Date of Birth<br />
d. Social Security Number – please include the complete number and not the last 4 digits<br />
SECTION 3: DEBT INFORMATION<br />
a. Reason for the Debt – self explanatory<br />
b. Date right to collect accrued – date the debt was generated<br />
c. Debt identification number, if any – maybe the employee’s SSN or some identifying<br />
information<br />
d. Original debt amount – self explanatory<br />
e. Number of installation – set amount or 15% of disposal pay<br />
f. Interest due – self explanatory<br />
g. Penalty due – self explanatory<br />
h. Administrative cost – self explanatory<br />
i. Total collection to be made – self explanatory<br />
j. Commence deductions on – effective date that collection will start<br />
SECTION 4: DUE PROCESS<br />
a. Creditor component 30 day salary offset notice – day the employee was notified of<br />
the overpayment<br />
b. Employee did not respond – self explanatory<br />
c. Employee requested a hearing – self explanatory<br />
d. Hearing held – self explanatory<br />
e. Decision for creditor component – self explanatory<br />
f. Other – self explanatory<br />
SECTION 5: CREDITOR COMPONENT INFORMATION<br />
a. Name – Creditor (HHS OPDIV)<br />
b. Address – HHS OPDIV complete mailing address<br />
c. Accounting classification – complete accounting classification that the overpayment will be<br />
collected into<br />
d. Document number, optional<br />
e. Certifying Official – Name and signature and telephone number for questions.<br />
PS05-09.2 Page 15 of 18
PS05-09.2 Page 16 of 18
Attachment D<br />
SAMPLE<br />
DEBT COLLECTION LETTER FOR SEPARATED EMPLOYEES<br />
Each <strong>Payroll</strong> Office<br />
<strong>Letter</strong>head here<br />
(2A)Name<br />
(2B)Street<br />
City, State Zip<br />
(1)DATE: Month date, year<br />
Dear Name:<br />
An overpayment record has been generated on your pay account for pay period(s) ending<br />
________________(20). The gross amount of your overpayment (including pay, all taxes, benefits and<br />
other deductions) is ____________(5). The overpayment is the result of<br />
__________________________(4).<br />
Under the provisions of 31 CFR 901.2, payment of this debt is due within 30 days from the date of<br />
this letter. You may remit the repayment in the net amount of $__________(6) by check or money order<br />
payable to DFAS-CL DSSN ____________________(7), along with the payment coupon at the bottom of<br />
this letter to ____________________(8).<br />
If you do not repay the debt in full within ___(9) days it will be forwarded to the Office of<br />
Personnel Management (OPM) or the office that handles your agency’s ‘out-of-service’ debts for further<br />
action.<br />
We encourage your prompt payment as in accordance with 4 CFR 102. 13 and 31 USC 3717,<br />
interest at the Treasury tax and loan rate, penalties and administrative fees, may be assessed from the date<br />
of this letter on any part of the debt not paid within _____(9) days of the date of this letter.<br />
You may request copies of records we hold pertaining to your debt by contacting this office.<br />
If you have any questions about your debt you may contact your timekeeper for time and<br />
attendance corrections, or your personnel office for changes in personnel items or allowances. For general<br />
questions your Customer Service Representative (CSR) can either assist you or contact this office to obtain<br />
information relative to your needs. Your CSR cannot answer questions on debts more than 12 months old.<br />
Contact the payroll office Customer Service Desk, at (comm phone number), DSN (DSN prefix)(14) for<br />
action.<br />
You may also request a waiver of repayment of the debt if you acknowledge the validity of the<br />
debt, but believe you should not be required to repay it. Although collection of your debt may continue<br />
after receipt of your waiver request, any amount collected by this office that is later waived will be<br />
refunded to you. Detailed guidance regarding waiver of claims for erroneous payments under the authority<br />
of 5 USC 5584 are contained in regulations of the employing agency.<br />
___________________ new fill-in-the-blank contains the agency’s web site.<br />
Sincerely,<br />
PS05-09.2 Page 17 of 18
(Signature Name)(15)<br />
Supervisor, Debt Processing<br />
_______________________________________________________________________<br />
Please remit with payment:<br />
Name___________(2A)___________________________ SSN____(17)____ PayBlk_(18)___ Code_(19)_<br />
Debt Dates_______(20)________ Debt Type_____(4)_____________ Creation Date ____(3)____<br />
Sequence Number___(21)______<br />
LOA__________(22)______________________________________________________<br />
______________________________________________________________________<br />
Payment Amount Enclosed $______(23)____________.<br />
PS05-09.2 Page 18 of 18